A Guide to House Flipping for Seniors
This article is written by Maria Cannon.
House flipping may be popular with hungry young investors, but there’s another segment of the population that can benefit from getting into the business: seniors. In fact, as Lucrum explains here, flipping houses can be a smart way for seniors to generate some extra income for themselves or their family members. While there are plenty of part-time job options for retired seniors such as substitute teaching and being an event worker, house flipping can be a part-time job or an additional side gig to add to your arsenal if you’re looking for something unique to do rather than the standard work hours.
Choosing the Ideal Property
The first thing you need to do is find the right property to flip. Most people might think the goal is to find a very cheap property and renovate it, but it’s not that simple. The Motley Fool points out that you should think of cosmetic vs. structural issues. It makes more financial sense to buy a home with cosmetic issues because structural issues are typically much more expensive to repair. Also, consider the location of the property and choose a desirable area that home buyers will want to move to. Let Lucrum guide you through the process, from property search to closing.
Finding a Mortgage
Lenders see house-flipping as a risky proposition, so getting a mortgage to flip a home is not as easy as getting one for your primary residence. When flipping a property, be ready to show you’re a low risk with good credit. Having ample cash for a down payment is helpful as well.
Renovations That Boost a Home’s Value
You definitely want to get the most bang for your buck, so when choosing renovations, Better Homes & Gardens suggests considering the ones that will add the most value. At the top of the list are creating an addition, redoing the kitchen, renovating a bathroom, and updating the home’s HVAC system. Any of these projects will make the home more desirable and easier to sell.
How to Sell Your Home
First, decide if you want to do it yourself or get a real estate agent to do it for you. An agent will take care of everything but will also take 2-3% of the sale price. Among the steps you need to handle when selling yourself are deciding on a price, advertising the listing, showing the property to potential buyers, and negotiating the final sale price. You’ll also need to keep the property clean and tidy inside and out throughout the process.
A Word of Caution
Buyers should always be cautious when buying a fixer-upper to flip. Many people choose a fixer-upper thinking they’ll save money due to the low cost. However, it can come as a shock when they find themselves stuck with massive costs for repairs and renovations they didn’t realize were needed.
When buying a fixer-upper, it’s important to plan appropriately and investigate exactly what the property needs. Some renovations are more costly than others, and doing your research upfront could save you a lot of money. When pricing out the cost of repairing a fixer-upper, you should also expect unforeseen issues to emerge. As a general rule, it’s a good idea to add 20% onto your estimate, especially for major repairs like electrical work, HVAC upgrades, foundation problems, or issues with asbestos or mold.
The Bottom Line
House flipping can be a lucrative way for seniors to generate income. With patience, some research, common sense, and the right help, you can get into the house flipping business and be successful at it. Get in touch with the Lucrum team to get started.
For the past 20 years, Lucrum has helped hundreds of people just like you overcome uncertainty and capitalize on the right investment opportunities. Reach out today for more information! 866-582-7865.